Naveen Patnaik seeks special session on mining law

Indian Opinion Analysis

The BJD's alarm over the 2026 amendment reflects a deeper structural tension in India's federal mining regime. Mines and minerals are a Union subject, but states lose a major revenue stream when auction royalties are replaced by a central levy. Odisha, which supplies over half of India's chromite and substantial iron ore, has the most at stake: mining contributed roughly 8% of its gross state domestic product in recent years. The precedent is the 2015 MMDR Amendment, which mandated auction-based allocation and sharply reduced state discretion. Here, the key change moves the pricing power from the state-run Odisha Mining Corporation to a central mechanism, potentially lowering the floor price for ore. The next signal will come when the Centre notifies the rules under the new Act, likely within six months, those rules will determine how much of the royalty pool actually flows back to Bhubaneswar.